THE role of family structure on financial socialiSation techniques and behaviour of students in the Eastern Cape, South Africa

Figures & data

Figure 1. Family structure model.

Adopted from: Rindfleisch et al. (1997)

Figure 2. Framework of the study.

Source: Own creation.

Table 1. Results of Family Structure

Family structure	Frequency	Percentages
Intact family structure	238	66.11
Non-intact family structure	122	33.89
Totals	360	100%

Source: Primary data

Table 2. Validity and reliability results of financial socialisation techniques

Factor 1: Parental Financial teaching	Cronbach’s Alpha (CA): 0.839
Statements	Factor loading	Items – correlation	CA after deletion
While I was growing up my parents taught me about savings. (B12)	−0.851	0.733	0.781
While I was growing up my parents taught me how to manage my money. (B6)	−0.818	0.690	0.792
While I was growing up my parents taught taught me about budgeting. (B20)	−0.806	0.671	0.798
While I was growing up my parents taught taught me about budgeting taught me how to be a smart shopper. (B13)	−0.766	0.615	0.813
While I was growing up my parents taught me about credit. (B1)	−0.668984	0.518	0.843
Factor 2: Modeling of Financial behaviour	Cronbach’s Alpha (CA): 0.771
Statements	Factor loading	Items – correlation	CA after deletion
While I was growing up my parents saved money each month for the future. (B23)	0.811	0.681	0.680
While I was growing up my parents invested for long-term financial goals regularly. (B22)	0.752	0.631	0.701
While I was growing up my parents spend within their budget. (B18)	0.687	0.499	0.747
While I was growing up my parents paid credit card balances in full each month. (B19)	0.577	0.484	0.753
While I was growing up my parents tracked their expenses monthly. (B10)	0.527	0.439	0.766

Source: Primary data

Table 3. Validity and reliability results of financial behaviour

Factor 3: Financial behaviour	Cronbach’s Alpha (CA): 0.875
Statements	Factor loading	Items – correlation	CA after deletion
I save money each month for the future. (D6)	0.766	0.732	0.846
I set money aside for emergencies. (D7)	0.716	0.668	0.855
I save money for long-term goals such as education. (D17)	0.703	0.619	0.861
I regularly set money aside for saving. (D1)	0.675	0.730	0.847
I regularly set money aside for possible unexpected expenses. (D13)	0.673	0.703	0.851
I keep a written or electronic record of my monthly expenses. (D9)	0.643	0.560	0.870
I review and evaluate my spending on a regular basis (D14)	0.506	0.589	0.865

Source: Primary data

Table 4. Regression results

Independent variable	Standardised Beta	Std. Error	Unstandardised Beta	Std. Error	T-value	P- value
Dependent variable: Parental financial teaching
Family structure	0.271	0.05	0.500	0.094	5.322	0.000*
R^2= 7.33%
Dependent variable: Modelling of financial behaviour
Family structure	0.287	0.05	0.513	0.090	5.676	0.000*
R^2 = 8.26%
Dependent variable: Financial behaviour
Family structure	0.159	0.05	0.298	0.097	3.054	0.002*
R^2 = 2.54%

Source: Primary data

Bold* = p<0.05 (statistically significant)

Table 5. Group comparisons

ANOVA tests					Cohen’s d	Levene test
Dependent variables	Means		t-value	p-value	d	f-value	p-value
	Intact family	Non-intact family
Parental financial teaching	3.758	3.257	5.322	0.000*	0.593	0.001	0.922
Modelling of financial behaviour	3.690	3.177	5.676	0.000*	0.632	0.372	0.542
Financial behaviour	3.173	2.875	3.054	0.002*	0.340	0.029	0.865

Source: Primary data

Bold* = p<0.05 (statistically significant)

Table 6. Regression results

Dependent variable: Financial behaviour
Independent variable	Standardised Beta	Std. Error	Unstandardised Beta	Std. Error	T-value	P- value
Family structure	0.031	0.051	0.058	0.095	0.607	0.544
Parental Financial teaching	0.269	0.058	0.272	0.059	4.641	0.000*
Modelling of financial behaviour	0.194	0.058	0.203	0.061	3.329	0.001*
R^2= 17.53%

Bold* = p<0.05 (statistically significant)

Table 7. Addressing the research hypotheses

Hypotheses	Description	Outcome
H1	Family structure has a significant influence and difference on financial socialisation techniques.	Accept
H2	Family structure has a significant influence and difference on financial behaviour.	Accept
H3	Financial socialisation techniques mediate the influence of family structure and behaviour.	Accept

Source: Own creation

Rindfleisch, A., Burroughs, J. E., & Denton, F. (1997). Family structure, materialism, and compulsive consumption. The Journal of Consumer Research, 23(4), 312–325. https://doi.org/10.1086/209486

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